Financial fraud is a major problem for businesses of all sizes. In fact, the Association of Certified Fraud Examiners (ACFE) estimates that organisations worldwide lose 5% of revenues to fraud.
No business is immune to fraud, but there are steps you can take to mitigate the risk. Here are five ways to do just that:
1. Understand your exposure
The first step to mitigating fraud risk is understanding where your business is most vulnerable. Do a self-assessment and identify the areas of your business that could be susceptible to fraud.
This could include things like your accounting and financial processes, your customer data and information, and your inventory management.
2. Put controls in place
Once you know where your business is most vulnerable to fraud, you can put controls in place to mitigate the risk.
For example, you might implement segregation of duties among employees, require dual approval for certain types of transactions, or institute a “whistleblower” policy so employees can report suspicious activity anonymously.
3. Educate your employees
Your employees are on the front lines when it comes to preventing fraud, so it’s important to educate them on what to look for and what to do if they suspect something.
You might consider holding regular training sessions or sending out periodic reminders about your company’s fraud policies.
4. Use a finance technology with built-in fraud detection
Technology can be a powerful ally in the fight against fraud. Look for accounting and financial software such as SunSystems that has built-in controls and fraud detection capabilities.
This can help you automate some of your controls and make it easier to spot suspicious activity.
5. Monitor and review regularly
Fraud prevention is an ongoing process, not a one-time event. So it’s important to monitor your exposure and controls on a regular basis, and make changes as needed.
You should also review your policies and procedures periodically to make sure they’re still effective.
Conclusion
Fraud is a serious problem for businesses, but there are steps you can take to mitigate the risk.
By understanding your exposure, putting controls in place, and educating your employees, you can help protect your business from fraudsters. And by using technology with built-in fraud detection capabilities, you can make it even easier to spot suspicious activity and keep your business safe.
Need help implementing fraud controls in your business? SunSystems can help. Our software includes built-in controls and fraud detection capabilities to help you mitigate the risk of fraud. Contact us today to learn more.
